Measuring vice: Why our creative national accountants mostly get it right June 3, 2014 THE OFFICE for National Statistics (ONS) has just increased the size of the British economy by nearly £10bn, a figure equivalent to around 0.7 per cent of its total size. George Osborne has not waved a magic wand, and we have not suddenly become more productive. The reason is that, for the first time, estimates [...]
UK mega pensions aren’t a bad idea – if government can resist destroying them June 3, 2014 IN THE Queen’s Speech today, the government is likely to give the go-ahead for large pension schemes along Dutch lines. Such collective defined contribution schemes have many advantages. They allow managers to pursue return targets without giving guarantees. Risks can be shared between generations and costs can be kept down as a result of economies [...]
Britain beware: How the Dutch pension system pits young against old June 2, 2014 IN TOMORROW’s Queen’s Speech, the government is expected to include the “Collective Defined Contribution” model (CDC) of the Dutch pension system in a forthcoming Pensions Bill. Pensions minister Steve Webb is right to consider it a strong model. But he must also be careful not to repeat the Dutch system’s mistakes, and should ensure that [...]
The state is in crisis – but free marketeers are losing the battle for reform June 2, 2014 DO YOU ever feel government isn’t fit for purpose? The evidence suggests you’re not alone. The EU elections saw anti-establishment parties tear chunks out of mainstream incumbents. In the US, Occupy Wall Street and the Tea Party have shown the degree of discontent from left and right, expressed in partisan gridlock in DC. Some on [...]
The undemocratic EU experiment that could push Britain to the exit June 2, 2014 IN THE upset of the European elections, anti-establishment parties swept up over 30 per cent of all seats in a damning indictment of the EU status quo. The case for a slimmed-down Europe a la Cameron, with more say for national parliaments, could not be stronger. But just when the wind should be in David [...]
Putin fears an EU fracking bonanza – but environmentalists don’t have to May 29, 2014 RUSSIA and China agreed on a $400bn, 30-year deal last week, wherein Gazprom will deliver 38bn cubic metres of natural gas a year to China. This will exacerbate the EU energy crisis, but the bloc still seems intent on ignoring the only obvious solution – fracking – and fidgets at the margins with renewables. Large [...]
Why Scottish independence would be costlier than the nationalists believe May 29, 2014 ON 18 September, the Scottish electorate will vote on whether to secede from the UK. Although supporters of the Union may be reassured by polls suggesting that break-up will not happen, this should not be taken for granted. And both sides have not properly analysed the economic consequences if the Scots do vote to leave [...]
How to make long-term saving work for everyone May 29, 2014 AUTO-ENROLMENT, the revolution in workplace pensions introduced in October 2012, has been a big success so far. Requiring firms to enrol staff in a private pension, with employee contributions topped up with tax relief and an employer contribution, the policy will reach all employers by 2018, with staff able to opt out if they wish. [...]
Forget the dodgy numbers: Leaving the EU makes economic sense May 28, 2014 UKIP’S recent electoral triumph has reignited debate about the cost of Britain’s place in the EU. But what do we know about the economics of our membership? Let’s start from the beginning: we’ll find that Brexit has long made economic sense. Prior to joining the then Common Market in 1973, two government white papers and [...]
How Google’s driverless cars could save your life – and make you money May 28, 2014 WHEN the man behind the Segway, the battery-powered personal mobility scooter, died after riding one of his products off a cliff, it seemed like a grim end to yet another transport fad. After the Sinclair C5, the hovercraft, the poweriser and the Segway, it’s easy to be sceptical about the next sci-fi “leap” in transportation. [...]
